United States
                       Securities and Exchange Commission
                             Washington, D. C. 20549


                                   FORM 10-QSB

                                   (Mark One)


[ X ] Quarterly Report Under Section 13 or 15(d ) of the Securities Exchange
      Act of 1934 For the Period Ended March 31, 1998
                                       or

[   ] Transition Report Under Section 13 or 15(d ) of the Securities Exchange
      Act of 1934 For the Transition Period Ended From          to
                               ------------------

Commission file number        0-25332

                           GOLF TRAINING SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)

       Delaware                                                  58-1963120
  (State or other jurisdiction of                             (I.R.S. Employer
  incorporation or organization)                             Identification No.)

       3400 Corporate Way, Suite G
         Duluth, Georgia                                               30136
  (Address of principal executive offices)                           (Zip Code)

                                 (770) 623-6400
              (Registrant's telephone number, including area code)

                                 Not applicable
   (Former name, former address and former fiscal year, if changed since last
                                    report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such shorter  periods that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No

                Applicable Only to Issuers Involved in Bankruptcy
                   Proceedings During the Preceding Five Years

Indicate  by check mark  whether  the  registrant  has filed all  documents  and
reports  required  to be filed by  Sections  12, 13, or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by the court. Yes No

                      Applicable Only to Corporate Issuers

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practical date:

Common Stock, $.01 Par Value - 3,933,104 shares as of March 31, 1998.


<PAGE>


                
                         PART I - FINANCIAL INFORMATION
Item 1.  Financial Statements

                           GOLF TRAINING SYSTEMS, INC.
                      Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>

                                                                          March 31,                June 30,
                                                                            1998                     1997
                                                                        ------------           -------------
                                                                         (Unaudited)               (Note)
                            ASSETS

<S>                                                                     <C>                    <C>    
Current Assets:
   Cash and cash equivalents .......................................... $    184,501           $      74,047
   Receivables, net ...................................................      190,844                 247,289
   Inventories ........................................................      166,610                 329,141
   Prepayments and other ..............................................      137,585                  38,814
                                                                        ------------           -------------

   Total Current Assets ...............................................      679,540                 689,291

Equipment and Improvements, net .......................................      116,850                 171,036

Other Assets:
   Patents, trademarks and license agreements, net ....................       81,014                 114,488
   Goodwill, net ......................................................    1,259,856               1,405,224
   Net assets of discontinued operations ..............................      843,146               1,329,940
   Other ..............................................................       15,651                   6,523
                                                                        ------------           -------------

                                                                        $  2,996,057           $   3,716,502
                                                                        ============           =============

             LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities:
   Accounts payable ................................................... $    337,094           $     126,535
   Notes payable ......................................................      750,000                      --
   Accrued expenses ...................................................      143,249                 184,188
                                                                        ------------           -------------

   Total Current Liabilities ..........................................    1,230,343                 310,723

Stockholders' Equity:
   Preferred stock, $.01 par value;
     3,000,000 shares authorized:
       Series A, 600 shares authorized,
       106 shares issued ..............................................    1,060,000               1,605,000
       Series B, 50 shares authorized,
       8 shares issued ................................................      200,000                      --
   Common stock, $.01 par value; 10,000,000
     shares authorized; 3,933,104 shares issued .......................       39,331                  36,893
   Additional paid-in capital .........................................   11,842,038              11,138,464
   Accumulated deficit ................................................  (11,375,655)             (9,374,578)
                                                                        -------------          -------------
   Total Stockholders' Equity .........................................    1,765,714               3,405,779
                                                                        ------------           -------------

                                                                        $  2,996,057           $   3,716,502
                                                                        ============           =============

Note:  The  balance  sheet at June 30,  1997 has been  derived  from the audited
financial  statements at that date but does not include all the  information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.

<PAGE>


                           GOLF TRAINING SYSTEMS, INC.
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)



<CAPTION>
                                                     Three Months Ended                Nine Months Ended
                                                         March 31,                        March 31,
                                                 --------------------------       --------------------------
                                                    1998            1997             1998            1997
                                                 -----------    -----------       -----------    -----------
                                                                   (Note)                           (Note)

<S>                                              <C>            <C>              <C>             <C>        
Net sales ...................................... $   390,488    $   853,001      $  1,397,536    $ 1,910,445
Cost of sales ..................................     293,377        539,365           978,518      1,240,203
                                                 -----------    -----------      ------------    -----------

Gross margin ...................................      97,111        313,636           419,018        670,242

Operating expenses:
   Selling and marketing .......................     352,921        315,054           949,463        978,045
   General and administrative ..................     399,155        332,577         1,094,896      1,010,439
   Research and development ....................      15,290          3,246            24,875          4,440
                                                 -----------    -----------      ------------    -----------

                                                     767,366        650,877         2,069,234      1,992,924
                                                 -----------    -----------      ------------    -----------

   Operating loss ..............................    (670,255)      (337,241)       (1,650,216)    (1,322,682)

Other income (expense) .........................    (102,906)         5,587           (88,470)        56,263
                                                 ------------   -----------      -------------   -----------

   Loss from continuing operations .............    (773,161)      (331,654)       (1,738,686)    (1,266,419)

Loss from discontinued operations ..............     (41,052)       (91,979)         (262,391)      (466,243)
                                                 ------------   ------------     -------------   ------------

Net loss ....................................... $  (814,213)  $   (423,633)     $ (2,001,077)  $ (1,732,662)
                                                 ============  =============     =============  =============

Basic net loss per share:
   Continuing operations .......................   $ (.20)        $ (.10)           $(.45)         $ (.41)
   Discontinued operations .....................     (.01)          (.03)            (.07)           (.14)
                                                   -------        -------           ------         -------
                                                   $ (.21)        $ (.13)           $(.52)         $ (.55)
                                                   =======        =======           ======         =======

Weighted average common shares .................   3,933,104      3,330,186         3,833,496      3,123,961
                                                   =========      =========        ==========      =========

Note:  The  statements of operations  for the three and nine month periods ended
March 31, 1997 have been restated from  previously  reported  amounts to reflect
the discontinued operations. See Note 2 to the Consolidated Financial Statements
in the Company's 1997 Annual Report on Form 10-KSB.

The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.
<PAGE>


                           GOLF TRAINING SYSTEMS, INC.
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

<CAPTION>

                                                                           Nine Months Ended December 31,
                                                                       -------------------------------------
                                                                            1998                    1997
                                                                       -------------           -------------

<S>                                                                    <C>                     <C>           
Cash flows used in operating activities .............................. $    (766,004)          $  (1,427,424)

Cash flows used in investing activities ..............................       (15,485)               (346,761)

Cash flows from financing activities .................................       891,943                      --
                                                                       -------------           -------------

   Net increase (decrease) in cash and cash equivalents ..............       110,454              (1,774,185)

Cash and cash equivalents at beginning of period .....................        74,047               2,009,820
                                                                       -------------           -------------

Cash and cash equivalents at end of period ........................... $     184,501           $     235,635
                                                                       =============           =============
</TABLE>

The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.
<PAGE>





                           GOLF TRAINING SYSTEMS, INC.
              Notes to Condensed Consolidated Financial Statements
                                 March 31, 1998
                                   (Unaudited)

1.  Basis  of  Presentation  The  accompanying   unaudited  condensed  financial
statements  of Golf Training  Systems,  Inc. (the Company) have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Regulation  S-B.
Accordingly,  they do not include all the information and footnotes  required by
generally accepted accounting principles for complete financial  statements.  In
the opinion of  management,  all  adjustments  (consisting  of normal  recurring
items)  considered  necessary  for  a  fair  presentation  have  been  included.
Operating  results for the three and nine month periods ended March 31, 1998 are
not  necessarily  indicative  of the results  that may be expected  for the year
ended June 30, 1998.  For further  information,  refer to the audited  financial
statements and notes thereto  included in the Company's Form 10-KSB for the year
ended June 30, 1997.

2. Loss per Share The Company  adopted the  provisions  of Financial  Accounting
Standards  Board Statement No. 128 "Earnings per Share"  effective  December 31,
1997.  Comparable  periods in the previous year have been restated to conform to
the  provisions of this  Statement.  No diluted loss per share amounts have been
presented due to the anti-dilutive nature of all other potential common shares.

3. Inventories The components of inventory consist of the following:
<TABLE>
<CAPTION>

                                                        March 31,           June 30,
                                                          1998                1997
                                                    ---------------     ---------------
<S>                                                 <C>                 <C>            
                  Raw materials                     $        92,458     $       133,592
                  Finished goods                            104,152             195,549
                  Allowances                                (30,000)                 --
                                                    ---------------     ---------------

                                                    $       166,610     $       329,141
                                                    ===============     ===============
</TABLE>

4. Notes Payable Notes payable is a $750,000  advance under a $1,000,000  credit
facility with a stockholder  which matures with all accrued interest on June 30,
1998. The advance accrues interest at 10% per year and is  collateralized by all
assets of the  Company.  The  Company  also  issued to the  lender a warrant  to
purchase up to 1,000,000 shares of the Company's common stock for $.25 per share
exercisable  through June 30, 1998. During April 1998 the remaining $250,000 was
advanced to the Company under the line.



<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

Results of Operations

Net sales (gross sales less returns and  allowances)  for the three month period
ended March 31, 1998 (1998 quarter)  decreased to $390,488 from $853,001 for the
three month period ended March 31, 1997 (1997  quarter),  and to $1,397,536  for
the nine month period  ended March 31, 1998 (1998 year to date) from  $1,910,445
for the nine month period ended March 31, 1997 (1997 year to date), or decreases
of approximately 54% and 27%, respectively.
As a result, gross margins also declined.

The decrease in sales in the 1998 quarter resulted from the Company's diminished
working capital position which required close management of available cash, thus
forcing a reduction in  purchasing of higher margin goods during the quarter and
year to date.  However,  the  Company  closed a line of credit  facility  with a
stockholder on December 31, 1997 which  increased the Company's  working capital
and facilitated  renewed  purchasing of goods.  While, the Company  continues to
focus its resources and efforts on its higher margin products while reducing its
investment  in low margin  products and services,  gross  margins  declined from
36.8% for the 1997  quarter to 24.9% for the 1998  quarter  and from 35% for the
1997 year to date to 30% for the 1998 year to date.  The  decline in margins for
the 1998  quarter is  attributed  to lower sales  levels in the 1998 quarter and
year to date as compared to prior periods as well as the Company's  reduction in
carrying value of older lower margin items and to maintaining fixed direct labor
costs.

Selling and marketing expenses and general and administrative expenses increased
16% to $752,076 for the 1998  quarter from  $647,631 for the 1997 quarter and to
$2,044,359  for  1998  year  to  date  from  $1,988,484  for  1997  year to date
reflecting  the effort of the Company to manage its  overhead  expense  level to
achieve more  efficiency and  profitability  while  increasing its investment in
advertising  and other marketing  activities  which have a longer term effect or
return.  General and  administrative  expenses  were above normal  levels due to
legal  expenses  related to the  closing  of the line of credit  and  litigation
costs.  Other expenses  increased due to amortization of a premium recorded as a
result of the warrant issued to the lender of the line of credit.

At June 30, 1997,  management  determined that its Sports Training Systems (STS)
operations should be classified as a discontinued operation.  (See Note 2 to the
consolidated  financial  statements  included in the Company's  annual report on
Form 10-KSB at June 30, 1997). Management's decision to cease operations was the
result of an alleged  breach of  contract by  Biosports,  LLC,  the  licenser of
certain  motion capture  technology  that STS intended to develop and market for
golf and other applications.  The loss from discontinued operations continues to
impact  the  profitability  of  the  Company,   however,  the  losses  from  the
discontinued  operations  for  1998  year to date  decreased  to  $262,391  from
$466,243  for  1997  year to date as the  Company  continued  to shut  down  the
operations.  Expenses for 1998 year to date relate  primarily to amortization of
certain assets and legal costs.

The  Company's  net loss of  $814,213  ($.21  per  share)  for the 1998  quarter
increased from a net loss of $423,633 ($.13 per share) for the 1997 quarter, and
increased  for 1998 year to date with a loss of  $2,001,077  ($.52 per share) as
compared  to 1997 year to date  losses of  $1,732,662  ($.55 per  share).  These
losses are primarily the result of the lower sales and gross margins.


Liquidity and Sources of Capital

At March 31,  1998,  the  Company  had  negative  working  capital of  $550,803,
including  $184,501 of cash and cash equivalents.  The notes payable included in
current  liabilities  is a $750,000  short term note under a  $1,000,000  credit
facility  with a  stockholder  of the  Company.  During  April  1998 the  lender
advanced the remaining  $250,000  under the line. The lender is also required by
June 30, 1998, to exchange the outstanding  principal balance under the facility
for 50,000 shares of new Series C, par value $10, convertible preferred stock, a
five  year  senior  secured  note in an  amount  equal to the  then  outstanding
principal balance less $500,000 and a five year warrant to purchase four million
shares of common  stock at an exercise  price of $.25 per share.  After June 30,
1999,  the senior  secured  note may be exchanged  for new Series D  convertible
preferred stock.

The Company had an  improvement  in its negative  cash flows from  operations of
$766,004  for 1998 year to date from  negative  cash  flows from  operations  of
$1,427,424  for 1997 year to date.  The reduction in the negative cash flow from
operations reflects reduced expenses. On February 12, 1998, the Company received
$418,557 from  BioSports,  LLC in  satisfaction of the award from an arbitration
proceeding in favor of its majority owned  subsidiary,  Sports Training Systems,
LLC. However,  the Company has also accumulated a significant deficit during the
period  of  fully  developing  its  product  lines  and may  require  additional
financing to achieve profitable  operations.  These conditions raise substantial
doubt about the Company's ability to continue as a going concern.


<PAGE>


                           PART II - OTHER INFORMATION



Item 1.   Legal Proceedings.

On November 12, 1997, the Company obtained a favorable ruling in its arbitration
proceedings with Biosports,  LLC. Under the terms of the award, BioSports was to
pay $411,000 in damages to Sports Training Systems,  LLC (STS), a majority owned
subsidiary  of the  Company.  On February  12,  1998,  STS received a payment of
$418,557  which   satisfied  the  award,   including   post-judgment   interest.
Additionally,  there has been no change in the litigation discussed in Note 2 to
the  Consolidated  financial  statements in the Company's  Annual Report on Form
10-KSB for the year ended June 30, 1997.

Item 2.   Changes in Securities.

          (a)     Not applicable.

          (b)     Not applicable.

Item 3.   Defaults Upon Senior Securities.

          (a)     Not applicable.

          (b)     Not applicable.

Item 4.   Submission of Matters to a Vote of Security Holders.

          On April 23, 1998 at a special meeting of the shareholders, a proposal
to amend the Company's  certificate  of  incorporation  to effect a one for five
reverse stock split was approved.

Item 5.   Other Information.

          Not applicable.

Item 6.   Other Information.

          (a)     Exhibits.

                  Exhibit 27  Financial Data Schedule

          (b)     Reports on Forms 8-K

                  None


<PAGE>


                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                     GOLF TRAINING SYSTEMS, INC.
                                                           (Registrant)



Date     May 12, 1998                                /s/ Daniel A. Gordon
    ----------------------                           --------------------
                                                       Daniel A. Gordon
                                                    Chief Executive Officer